In today’s business landscape, staffing companies are increasingly adopting platform staffing as a key strategy to offer flexible work arrangements. This approach provides numerous advantages that are beneficial for risk management and controlling claim costs. However, these advantages may be partially offset by certain challenges. In this blog, we will delve into the strengths and considerations of platform staffing from a risk management perspective.
How staffing platforms can enhance risk management programs:
- Control in the qualification/onboarding process – Many staffing apps are designed in a way that candidates cannot proceed to the next step without providing the required information. This structured approach ensures that questions are not left unanswered and forms are not left incomplete or misplaced. In contrast, traditional staffing methods may result in unanswered questions and incomplete or misplaced forms.
- Verifying insurance requirements – If independent contractors are being utilized, apps can serve as a tool to verify their insurance requirements. Alternatively, they can be designed to match independent contractors with the necessary coverage, ensuring that they have the appropriate insurance in place.
- Executing service agreements – The use of the platform ensures that contractual controls are in place by requiring clients to complete the necessary user agreements before they can participate in the app. This helps ensure that all parties involved adhere to the agreed-upon terms and conditions.
- Decreased risk of unqualified placements – Most apps are built so users cannot access jobs if they do not have the required qualifications. They would have no ability to be matched with a job outside their skill set.
- Feedback mechanisms – Platform apps enable both workers and clients to provide immediate feedback, which plays a crucial role in reporting unsafe working conditions. This feedback mechanism facilitates the timely identification of potential hazards and allows for corrective action to be taken before any loss or harm occurs.
- Claim reporting and investigation – Claims can be reported to the staffing company directly through the app, by either the worker or client. Enhanced capabilities may include the ability to upload photos, accident investigation forms, witness statement, etc.
- Verifying workplace injuries – Apps can be used to verify shift hours and if geo-tracking is used the platform provides the ability to confirm if a worker was physically on location at the time of the stated injury.
Considerations:
- Dependence on technology – there’s the risk of technical glitches, cyber threats, or system failures which can disrupt the hiring process or ongoing servicing of clients.
- Physical site inspections – may get overlooked or be more challenging to complete in the client onboarding process when relying on a largely technology-based process.
- Automation of certain decision making – built in functions of the app could potentially lead to liability issues when it comes to candidate matching or restricting a user’s access. For example, automatically restricting a workers’ access to shifts without fully investigating any extenuating circumstances could lead to discrimination complaint.
Platform staffing offers an unprecedented avenue of accessing diverse talent pools, promoting flexibility, and enhancing operational efficiencies. It’s imperative to understand and utilize the risk management strategies it encompasses as well.
To learn more about platform staffing, contact a Marsh McLennan Agency (MMA) advisor today.
